Westlake Chemical Corporation (WLK)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,750,000 | 21,109,000 | 21,083,000 | 20,960,000 | 21,035,000 | 21,396,000 | 20,981,000 | 20,806,000 | 20,550,000 | 20,425,000 | 20,372,000 | 19,741,000 | 18,459,000 | 17,108,000 | 14,719,000 | 14,050,000 | 13,835,000 | 13,694,000 | 13,555,000 | 14,163,000 |
| Total stockholders’ equity | US$ in thousands | 10,527,000 | 10,662,000 | 10,574,000 | 10,331,000 | 10,241,000 | 10,754,000 | 10,544,000 | 10,291,000 | 9,931,000 | 9,621,000 | 9,404,000 | 8,681,000 | 7,955,000 | 7,298,000 | 6,771,000 | 6,261,000 | 6,043,000 | 5,949,000 | 5,901,000 | 5,893,000 |
| Financial leverage ratio | 1.97 | 1.98 | 1.99 | 2.03 | 2.05 | 1.99 | 1.99 | 2.02 | 2.07 | 2.12 | 2.17 | 2.27 | 2.32 | 2.34 | 2.17 | 2.24 | 2.29 | 2.30 | 2.30 | 2.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,750,000K ÷ $10,527,000K
= 1.97
The financial leverage ratio of Westlake Chemical Corporation has shown a gradual decrease from 2.40 as of March 31, 2020, to 1.97 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations over the analyzed period. A lower financial leverage ratio suggests that the company is less dependent on borrowed funds and may have a stronger equity base to support its operations. Overall, the declining trend in the financial leverage ratio for Westlake Chemical Corporation signifies a potentially healthier financial structure and reduced financial risk.
Peer comparison
Dec 31, 2024